Are you ready to start your own business? Do you have an idea or business plan that you know won’t fail? Then you should get started right away! However, how can you finance your business when your credit score is poor? Don’t you worry, there are plenty of options for you to get the money you need and get your business going, despite your credit score. From instant cash loans to family that wants to help, here are a few ideas to get the money you need without a stellar credit history.
Rather than looking into big loans to finance your business, start small. Some small instant cash loans will give you cash right away and require a no credit card check. You can start building your business a little at a time, funding it in small increments until your credit goes up or you have enough to open your business in full. Visit OzMoney and start your business today!
Find a Co Signer
If you are looking to take out a loan in order to get your business started, you will likely need a good credit score to get any significant amount of money. If your credit score is poor, you might not be able to get the loan that you need. However, if you have a family member or close friend who has excellent credit, they may be able to sign onto the loan as a cosigner and get you that cash. A cosigner will essentially be applying for the loan alongside of you, taking out the cash with you as a team. Their excellent credit score will be taken into account on the loan and give you more of a chance to get the money for your business. Be sure that the person you ask to cosign understands that they are also on the line for the loan. In turn, be sure you make the loan payments in a timely manner so that you do not lower their credit score and, at the same time, raise your own score.
Ask Family and Friends
Rather than asking a close confidant to sign a loan with you, why not ask directly for money. Your family and friends may be very willing and able to donate to your new business. In addition, family and friends will not ask for your credit history! Make sure you keep track of how much money you receive and from whom. Everyone should be on the same page as to if the money is a loan or if it is yours to keep. Put everything in writing to make sure it is clear!
Build Your Credit
It may be a good idea to take some time to build your credit score before jumping into opening a business. Take a look at your credit report and see what you can do to improve your score and therefore enable you to take out bigger loans. In the meantime, work on fine tuning your business plan, researching how to be an entrepreneur and developing your plan even further. By the time your credit score has gone up, you will be very ready to start your business in a smart and well thought out way!
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